Transcript Slide 1

Mobile technologies as a driver for
development and innovation in Africa
Thecla Mbongue
Senior Research Analyst – Africa
Informa Telecoms & Media
2014 IASP Africa Division Conference
Gaborone, 11 April 2014
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Agenda
About ITM
Mobile telecommunications landscape in Africa
Mobile apps/services improving life in Africa
Recommendations
About Informa Telecoms & Media
We are the leading provider of insight , events and training to the global telecoms and media community
Mobile telecommunications landscape in Africa
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Fastest growing markets globally
810 million
subs in 4Q13
Penetration
rate: 71%
Annual
growth rate:
10%
2013 annual
revenues:
$59 billion
Botswana – Mobile market, 4Q13
Share of Africa subscriptions, 4Q13
Nigeria
15.7%
Egypt
11.8%
Rest of
Africa
49.6%
South Africa
8.9%
Subscriptions
Penetration rate
148%
Annual growth rate
4.5%
Revenues – 2013 (annual)
Morocco
5.2%
Kenya
3.9%
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Algeria
4.9%
3.1 million
US$319 million
Highest net additions by market – 4Q13
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Top markets in terms of annual growth rates – 4Q13
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Major investors – 4Q13
Market share
(of total Africa subs)
Total
Subscribers
23.9%
125.77 m
87.02 m
68.10 m
62.77 m
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14.3%
13.0%
11.9%
Mobile services usage beyond voice
•
•
•
1.8 billion mobile data users end-2013 (all services cumulated)
Messaging represents 59% of total
Mobile financial services (MFS) and Internet access record highest growth rates
Mobile data users by segment (million) – end-2013 forecasts
Social
Networking
3.9%
Games
2.8%
Others
5.3%
Music
4.2%
Applications
4.3%
Internet
7.3%
Mobile
Payments/Banki
ng
12.8%
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Messaging
59.4%
9
• The number of smartphones in use in
Africa jumped from 79 mill. in 2012 to over
112 mill. end-2013. The number will pass
the 400 mill. mark by 2018.
• High growth enabled by more affordable
data-capable devices, feature phones and
smartphones.
Smartphone usage forecast in Africa, 2014 -2018
Millions
Smartphones usage uptake
2013
2018
200
150
100
50
0
• Across Africa affordability is still an issue for
the average end-user. However, increased
partnerships
between
handsets
manufacturers and operators has been
beneficial for the consumers.
• At he same time, operators promote more
segmented prepaid data plans or
sometimes partner with banks to offer
handsets financing schemes.
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Egypt
Kenya
Nigeria
South Africa Rest of Africa
Mobile apps/services driving development and innovation
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Mobile financial services evolving
from basic P2P transfer
Government
(tax collection)
DRC: payment of
police and army
officers
Mauritius: tax
collection
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Schools
Utility
companies
Various countries:
school fees. Latest
partnership include
Moov and University
of Togo
Various countries:
Satellite TV,
restaurants, ticketing.
Entertainment
industry
Various countries:
Payment of bills
(electricity, water).
M2M for metering
services
Financial
institutions
Various countries: M2M for
POS terminals, ATM services
for cash out, international
remittances (Western
Union…), insurance, stock
exchange.
Effective data pricing fuels higher usage of social media
Social networks price plans in Nigeria
•
As price competition increases in the data field, operators segment data
price plans further with social network bundles.
•
In April 2013, Airtel Nigeria launched a dedicated WhatsApp data plan
under which unlimited usage is charged NGN100 (US$0.62) per month.
The price plan attracted over 400,000 users in 1 month.
•
In July 2013, launched a data bundle dedicated to social network
Eskimi. The bundle is available on a weekly and monthly basis. The
weekly bundle is charged at NGN25 (US$0.15) and the monthly bundle
is charged at NGN60. According to MTN, Eskimi has about 6 million
users in Nigeria. In January 2013, Eskimi partnered with MTN’s
competitor Etisalat to provide access to the platform via a dedicated
link on Etisalat’s portal.
•
Facebok bundles are available on MTN, Airtel and Etisalat. Operators
however still offer Facebook Zero access via mobile web browsers. MTN
also offers a Twitter bundle.
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Airtel WhasApp data bundle
13
Effective data pricing: carrier billing to boost app store
downloads
MTN Nigeria launches carrier billing
•
In July 2013, MTN Nigeria partnered with US software provider
neXva to launch NextApps Store.
•
The application store consists of free and premium applications
and is available online and initially for Android smartphones.
•
In addition, the store features “one-click” billing that enables
MTN subscribers to purchase applications and have the
purchase price taken from their pre-paid account or added to
their postpaid phone bill.
•
This is the first time a Nigerian operator offers carrier billing
option for payments on apps stores. Until then, Nigerian had to
pay for their apps by credit card, which limited the potential
buyers to a limited segment of the small banked population. At
the same time, Nigerian credit cards are generally not accepted
on international platforms, which narrows the buyers to a small
segment having bank accounts in Western countries.
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14
mGovernment
Collaboration with local authorities and communities to improve basic government services
Birth registration services
• Service available in Cote d’Ivoire (“Môh Ni Bah”) and Senegal. According to UNICEF about 66% of
births are not registered in sub-Saharan Africa. Môh Ni Bah targets the rural population. Registration
done via SMS or mobile app by appointed agents in a village or the village chief.
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mGovernment
Election board available via SMS
• Since November 2012, the Burkina Faso election board can be consulted via SMS. Subscribers from any
network can send the key word “CENI” (Acronym for the electoral commission) and their voting card
number to a short code from any network, The service is charged XOF200 (US$0.39) per message sent.
The service is also available online via the electoral commission’s website.
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mGovernment
Botswana Government has a strong presence on the social media sphere
• mGovernment is first about efficient use of all mobile services and applications available.
• Could the initiative be taken to the next level with a dedicated mobile app and SMS based platform?
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mGovernment
Nigeria’s ‘free phones for farmers’ plan
• In 4Q12, Nigeria’s Federal Ministry of Agriculture and Rural Development announced plans for a
program under which free phones would be distributed to farmers. The news sparked controversy, as
many feared that the project would soon become a white elephant, financially beneficial only to corrupt
officials.
• According to the minister, farmers will acquire mobile phones through network operators in their
locality, paying for the devices with vouchers issued by the government. The authorities say they will
work in partnership with mobile operators, which will sell the devices through their retail outlets. Once
a farmer buys a phone and a SIM card, an e-wallet account will be opened through which he can receive
vouchers to buy fertilizer and seeds at subsidized rates.
• The initiative reveals incoherence of the Government’s rural market strategy and it would have been
more beneficial if it had been combined with rural projects managed by the country’s USF management
body.
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mHealth
• In 2011, Orange Kenya launched mPedigree, an SMS based system to fight counterfeit drugs in Kenya.
The service is to be rolled out in different health centres countrywide and will ensure that all drugs
have their serial numbers scanned before being administered to patients.
• According to the Health Ministry, counterfeit drugs account for up to 30% of the total drugs in the
country. Orange Kenya is also working with Qualcomm and other partners in a project dubbed
‘Wireless Reach’ aimed at automating the procurement of Anti-Retroviral drugs in public clinics.
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mHealth
.
Cameroon engineer develops tablet to treat cardiovascular diseases.
• A Cameroonian engineer launched a tablet embedded with software to help treat cardiovascular
diseases. Branded “Cardiopad”, the 10 inches 3G-enabled tablet is assembled in Cameroon with
elements imported from Taiwan. The tablet uses Windows CE operating system. The aim is to equip
remote/rural medical centers with a Cardiopad to transmit data via mobile networks to a
cardiologist, also equipped with a CardioPad.
• Cameroon has about 30 cardiologists covering a
population nearing 20 million and those
cardiologists are concentrated in urban centers
Douala and Yaounde.
• Challenge: Limited broadband coverage in
Cameroon. DSL, FTTx, WiMAX and EV-DO
networks limited to urban centres. WCDMA
frequencies yet tNo 3G network in Cameroo,
except for EV-DO.
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Energy: MTN Nigeria and Nova-Lumos in “mobile electricity”
deal
• In April 2014, MTN Nigeria and utility provider Nova-Lumos partnered on a next-generation alternative
"mobile electricity" service. The Nova-Lumos service will provide alternative electricity to MTN
customers who are living in rural areas across Nigeria and are not connected to the electricity grid.
• The Nova-Lumos service is provided using a solar panel and an indoor unit that allows MTN customers
to subscribe to alternative electricity on demand using their mobile phone. With Nova-Lumos, MTN
customers can replace kerosene, candles and flashlights with electricity.
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Telesom and Refugees United partner to reunite refugees in
Somaliland
• Somaliland-based telecoms service provider Telesom has partnered with Refugees United to provide a
platform that will help reunite refugees in the country.
• The operator has donated 13 million SMS messages and a toll-free helpline to enable citizens to register
with Refugees United’s family-tracing platform.
• The service is free to all Telesom subscribers. In 2Q11, Refugees United entered into a similar
partnership with Safaricom and Ericsson to help reunite displaced persons in Kenya.
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Cattle tracking
• In 2Q13, Botswana changed its livestock identification and trace-back system (LITS) from
using reticular bolus with radio-frequency identification (RFID) microchips to a digital eartag system.
• The pilot insertion of the electronic ear-tag initiative kicked off in Ramotswa, Botswana’s
South East South district this month. Officials estimate that approximately 30,000 cattle
have been tracked thus far.
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Recommendations
Simplicity
•
Consumers need to access services via clear and easy processes
•
Do not neglect USSD functionality, as many of African mobile customers still use basic devices
•
Carrier billing option key to increase the number of app purchases
Segmentation
•
In Africa, the low end segment (i.e most of the population) is used to buy in small quantities, hence
the success of small denomination airtime on prepaid
•
Segmenting per service is also key, as it gives the customer the impression to pay for only what they
need
Strong Customer awareness strategy
•
Customer awareness is key to service uptake. Very often new services are only marketed at launch
and/or not explained enough to the target audience
Mobile security policy
•
Mobile security systems and processes should be constantly implemented
16/10/12
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24
Thank you
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